Changing the Role of Central Banks in Monetary Policy Implementation Amid COVID - 19 Pandemic

Abstract

In 2020 the economies of the whole world faced the coronavirus pandemic – one of the most serious challenges in recent decades, its consequences had a negative impact on all spheres of public life, especially on the standard of living of citizens. These events required decisive action and closer coordination of the efforts of the Bank of Russia and the Government of the Russian Federation in the sphere of the state's monetary policy, as the basis for stabilizing the welfare of all segments of the population. The inflation targeting regime used by the Central Bank of the Russian Federation has shown its effectiveness during the 2020 pandemic. However, it is impossible to manage inflationary processes without establishing solid constitutional and legal foundations of the state's monetary policy and securing the place of the Bank of Russia in the mechanism of state power. In this regard, the question of determining the essence of monetary policy and the limits of government intervention in its implementation requires attention. Based on the experience of foreign and domestic researchers, the article attempts to give the author's definition of monetary policy. The main goals of monetary policy in an unstable economy caused by the COVID-19 pandemic are identified. The role of the Bank of Russia in the implementation of monetary policy is determined. The basic principles of monetary policy, which should be guided by the Bank of Russia and the Government of the Russian Federation, are proposed.